Danish biotechnology company NeuroSearch A/S (CPH:NEUR) announced on Wednesday the entering into an agreement with, among others, Teva Pharmaceutical International GmbH (Teva), to release Teva from all outstanding obligations under the agreement from 2012 concerning the transfer of NeuroSearch's rights in and to Pridopidine.

Under this current agreement, in the event that Teva prior to 31 October 2018 enters into an agreement with an identified third party relating to the sale and transfer of Teva's rights in and to Pridopidine, then NeuroSearch will receive a cash payment of USD450,000.

This agreement is in connection with Teva's decision not to develop Pridopidine further following the failure by Pridopidine to meet its primary endpoints in Huntington's Disease in a phase II trial conducted by Teva and potential interest in the asset by an identified third party.

According to the company, provided this agreement is finally completed, NeuroSearch's financial expectations for 2018 will be amended from a loss of DKK3.5m to DKK4.5m to a loss of DKK0.8m to DKK1.8m.

NeuroSearch specialises in pharmaceuticals for treating diseases and disorders affecting the central nervous system.

(EUR1.00=DKK7.45)